Actions Semiconductor Co. Ltd. Stock Downgraded (ACTS)

NEW YORK ( TheStreet) -- Actions Semiconductor (Nasdaq: ACTS) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity and weak operating cash flow.

The share price of ACTIONS SEMICNDCTR LTD -ADR has not done very well: it is down 13.48% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 209.2% when compared to the same quarter one year ago, falling from $0.51 million to -$0.56 million.

The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ACTIONS SEMICNDCTR LTD -ADR's return on equity significantly trails that of both the industry average and the S&P 500.

Net operating cash flow has significantly decreased to -$0.46 million or 107.75% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

ACTIONS SEMICNDCTR LTD -ADR has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ACTIONS SEMICNDCTR LTD -ADR increased its bottom line by earning $0.05 versus $0.01 in the prior year.

Actions Semiconductor Co., Ltd. operates as a semiconductor company in the People's Republic of China. The company has a P/E ratio of 55.7, above the average electronics industry P/E ratio of 51.3 and above the S&P 500 P/E ratio of 17.7. Actions Semiconductor has a market cap of $143.6 million and is part of the technology sector and electronics industry. Shares are down 8.7% year to date as of the close of trading on Wednesday.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.